Same same,but different: the heterogeneous nature of subcontractors inside Italian industrial districts

Abstract

This paper investigates the structural features and performances of small firms interacting inside regional production networks, with particular regard to Italian industrial districts specialized in footwear production. A typological classification of the various participants in the supply chains is introduced and used to interpret the performances of the main groups identified, focusing on a five-year period following the 2008 financial crisis. The empirical investigation is conducted using an innovative archive containing detailed information on a large share of Italian micro and small firms that are generally excluded from most firm-level databases. The results show that, inside industrial districts, subcontractors are best described as a set of heterogeneous agents with distinct identities and idiosyncratic approaches to the market. The most widely diffused type of supplier still retains most of the structural characteristics traditionally described by the literature. However, industrial districts are also characterized by the presence of advanced forms of subcontractors whose organizational structure differs from that of a traditional supplier: in fact, such producers share more commonalities with end product firms. The analysis of the performances indicates that advanced subcontractors displayed better results during the period 2008–2012, while traditional suppliers tend to occupy a peripheral position in most subcontracting networks.     

The decline of the industrial district of Como: recession,relocation or reconversion?

Industrial districts are experiencing intensifications in those economic conditions that have historically favoured them. Some of them have entered a process of decline, which might seem the cause or the effect of recession, relocation or reconversions into different models. The present paper aims at contributing to the debate on the evolutionary patterns of industrial districts, offering an explorative look at the phenomenon of industrial districts’ decline. This topic has been widely overlooked in literature and demands further empirical evidence and conceptual insights. To this purpose, the paper builds on the longitudinal case study of the industrial district of Como, illustrating and analysing its decline process from 1980 to 2003. The focus of the study is on the determinants of an industrial district's decline and the consequences on the structures of the district itself. The findings are then abstracted to a model for the understanding and explanation of the decline of industrial districts. The conclusion is that scholars, practitioners and policy-makers might benefit from enhancing their knowledge of industrial districts’ decline and also from interpreting industrial districts’ evolution in a wider sense. The paper concludes with contributions and suggestions for further research.     

产业集群与我国制造业全球价值链提升

随着经济全球化的深入发展和国际产业分工的不断深化,在全球产业价值链体系中,以集群为特征的经济增长方式在促进国别或区域经济发展中逐渐显示出其重要性。本文在此结合我国在大规模承接国际制造业产业转移的基础上,分析产业集群与我国在全球制造业产业价值链体系中的位置提升。     

Global value chains,local collective action and corporate social responsibility: a review of empirical evidence

A key debate in the corporate social responsibility (CSR) literature is the tension between global pressures and local responses. Developing country suppliers often grumble that CSR compliance adds costs. Yet, local collective action, articulated through industry associations, can potentially reduce costs and promote local embeddedness of CSR initiatives. Through case study analysis, this paper considers how demands for CSR compliance prompted collective action responses in selected developing country export industries. We argue that differences in collective responses can be partially explained by how local export industries are inserted into global value chains. We distinguish between ‘highly visible’ value chains, led by internationally well known brands as lead firms, and relatively ‘less visible’ chains, where external CSR pressures come from a variety of sources, including less dominant lead firms, international/national regulatory frameworks and national media. This differentiation suggests a possible trade‐off between the independence and the embeddedness of collective CSR initiatives. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.     

Territorial systems and relocation: Insights from eight cases in Japan

This paper investigates the evolution patterns of eight territorial systems in Japan during the period of industry relocation. Multiple case study methodology was applied. Data were collected through interviews with entrepreneurs and local government officials. Based on the findings that reveal adaptation processes in which manufacturing firms are involved, we propose a three-stage evolutionary model to conceptualize the changes that are taking place in Japan's territorial systems. We argue that the transactional relationships are evolving towards more socialized relationships and that these relationships are evolving towards more formalized, knowledge-based innovation networks.     

Factors shaping the international knowledge connectivity of industrial clusters: a comparative study of two Latin American cases

Abstract

Recent research has emphasized that success of industrial clusters is not only driven by intra-cluster knowledge sharing (‘local buzz’) but also by externally sourced knowledge (‘global knowledge pipelines’). This article examines the factors that determine the channels through which clusters connect with global knowledge pipelines depending on the structure of the global value chain within which they are inserted, their knowledge base and their stage of evolution. Building on a comparative case study of the salmon farming cluster in Chile and the software cluster in Costa Rica, we adopt an evolutionary perspective based on historical analysis to better understand how the configuration of clusters’ international knowledge linkages shifts over time. Our findings suggest that (i) the more hierarchical the global value chain structure, the less room for knowledge co-creation between local and foreign actors; (ii) clusters relying on analytical knowledge bases opt for more formal and coordinated links with high involvement of public actors, whereas in clusters relying on synthetic knowledge bases, international knowledge interaction is based on less formal links mainly between business actors; and (iii) as clusters evolve the channels through which they connect with foreign knowledge increase in number and new ‘hybrid’ varieties develop.     

Local clusters in global value chains: exploring dynamic linkages between Germany and Pakistan

Recent research has underlined the importance of external linkages for industrial clusters. Suppliers and buyers within a global value chain offer important external ties for cluster-based producers not only in terms of the distribution of physical goods, but also for knowledge flows and innovation. Globalization has intensified such value chain links, connecting geographically dispersed producers to global markets. Yet, there is limited research on how local clusters enter global chains or on ties between clusters in the developed and developing world. This study addresses this gap. It uses the case of the global surgical instrument industry to analyse connections and differences between the industry's leading production clusters in Germany and Pakistan. Global standards, low-cost competition, and advances in medical technology raise challenges for both clusters. The paper explores the responses to these challenges. It distinguishes between knowledge and production links to illustrate differentiation in each cluster, diverging trajectories and continuing ties.     

Antecedents of trust in industrial districts: an empirical analysis of inter-firm relations in a Turkish industrial district

Structural features and institutional settings of industrial districts, rather than contracts as a co-coordinating mechanism, promote trust in exchanges between firms in industrial districts. Based on this assumption, the paper explores the antecedents of trust in a Turkish industrial district at three levels: institutional environment; institutional arrangements; and inter-firm exchanges. In relation to institutional environment, dominant institutions of the Turkish economy – mainly state and finance – and their policies that undermine the role of SMEs in economic development are studied. In this context a third institution, the ‘district association’ that has a vital role in promoting trust-based governance has been analysed. At the second level, formal and informal institutional arrangements that govern the web of exchanges between firms are surveyed. The third level of analysis is directed at entrepreneurs and their attitudes towards family, friendship, expertise and reputation are studied. The research site is the Merter textile district in Istanbul. Data for second and third levels of analysis has been collected through structured interviews and is analysed quantitatively. For institutions and institutional environment, data has been collected mainly by in-depth interviews and is supported by secondary data. Research findings show that informal institutional arrangements are more important than formal arrangements and reputation and expertise of the other firm is more important than family-friendship connections as antecedents of trust.     

Industrial and knowledge relocation strategies under the challenges of globalization and digitalization: the move of small and medium enterprises among territorial systems

Owing to globalization and digitalization, small and medium firms adopt relocation strategies to transfer their activities (and implicitly also knowledge) among territorial systems, inducing transformations into both source and destination areas. Cognitive proximity and knowledge creation/transfer play a crucial role, especially critical when concerning tacit knowledge, which can be transferred only by moving people. In each industrial cluster or industrial district it is possible to identify a kernel of critical activities, which requests complex competencies and has high added value, and a kernel of tacit knowledge, which is based on repeated face-to-face interactions. The former resists globalization and the latter prevents digitalization, which impacts heavily on territorial systems lacking trust, cooperative attitude, and other socio-cognitive factors. Relocation strategies are divided into selective and replicative alternatives, depending on the ability to preserve large kernels. When replicative strategies are followed by many firms, the socio-cognitive integrity and the economic competitiveness of the territorial system are severely damaged. Thus, in order to prevent the ruinous consequences of massive replicative relocation, local and regional governments should steer territorial systems towards selective relocation strategies supporting innovation and improving human capital, paying attention and developing socio-cognitive factors too. In the final part of the paper, case studies of industrial and knowledge relocation at intra-European level are discussed, and a general model is proposed.     

De-industrialization and comparative advantage in the global value chain

We investigate the causes of de-industrialization and potential for re-industrialization using trade-linked input–output data from WIOD. By introducing a new global value chain measure of comparative advantage, we relate a sector's share in domestic final demand to that in production and separate the direct effect of trade on its income share. This method identifies the declining share of manufacturing value added in domestic final expenditures to be the main cause of de-industrialization. Differences in comparative advantage between countries do matter, especially in the case of employment shares, but have a limited impact via the direct trade effect on value added. The findings point to a peculiar paradox of industrial policy: precisely when it is successful in raising competitiveness and hence productivity growth of manufacturing, it also furthers the global decline of relative prices in manufacturing. In contrast to the national objectives of re-industrialization, effective industrial policies accelerate de-industrialization in the global economy.     

顾客价值创造视角的商业模式演进研究

商业模式演进是公司的价值创造的必经过程。该文从顾客价值创造角度分析了商业模式演进的过程,指出商业模式的焦点是为客户创造价值,关注"用新模式代替旧模式"是商业模式演进的目标;基于此,笔者通过分析影响商业模式演进的因素得到三点结论:顾客的消费观念是前提,把握顾客价值的细分、创新、重定位及价值体验是动力,最适合顾客的模式是目标。本文的研究结论将对中小企业的商业模式实践提供有价值的参考和依据。     

全球价值链:世界城市网络研究的新视角

城市网络是城市存在的空间范式,它在空间尺度上可划分为世界城市网络和区域城市网络。其中,世界城市网络研究经历了世界城市、世界城市等级体系、世界城市网络三个阶段;区域城市网络则包括巨型城市区、全球城市区域、城市群等研究领域。世界城市网络所运用的生产者服务业分析方法中的单一中心城市模式与区域城市网络的封闭模式相互割裂,不能合理解释当代世界城市体系的空间格局及内在关系。全球价值链可将世界城市网络与区域城市网络有效融合,是研究不同功能城市所组成的多元世界城市网络模式的分析工具。     

Tracing VARDI coefficients: a proposal

ABSTRACT

We propose a new approach for tracing the so-called ‘value-added-(re)distribution-important coefficients’ (in short the VARDI coefficients) in a world input–output model. From the perspective of a selected group of economies, VARDI coefficients may be defined as those elements in world input–output matrix in the case of which a small change in their levels leads to the maximization of a share of this group of economies in value added in global value chains. Due to the rapid development of the World Input Output Database, this approach may be easily applied in empirical research to different groups of countries and sectors in world IO models. In an illustrative empirical case study, we use the new approach in order to answer a question regarding what the main directions of the future macroeconomic policy of the U.S. could be in order to ensure the maximization of the country’s share in global value added.     

Effects of residential relocation on household and commuting expenditures in Shanghai, China

Over the past three decades, China's cities have undergone massive spatial restructuring in the wake of market reforms and economic growth. One consequence has been a rapid migration of urban residents to the periphery. Some movers have been forced out either by rising urban rents or government reclamation of their residences. Others have relocated willingly to modernized housing or for other lifestyle reasons. This article examines the effects of relocation to the urban edge on household well-being. It explores the factors underlying changes in housing and transportation costs as households move to the periphery. The research also examines whether those who moved involuntarily are affected differently from those who moved by choice. Results show that, relative to those who moved by choice, involuntary movers are disproportionately and adversely affected in terms of job accessibility, commute time, housing consumption and disposable income. The findings also show that, compared with higher-income households, lower-income groups are disproportionately affected in relation to housing costs, accessibility losses, disposable income and household worker composition. These results indicate that relocation compensation for involuntarily relocated households should be expanded to include more than just housing value: it should encompass urban location changes, household needs and relocation costs.     

Industrial districts and internationalization: the case of the agri-food industry in Modena,Italy

The paper explores the structural changes, in response to internationalization, in an important traditional activity (food chain, meat processing) in a typical ‘district area’. In the paper, attention is focused on the ‘Institutional structure of production’ (Coase, R. 1992 Coase, R. 1992. The institutional structure of production. American Economic Review, 82(4): 713–719. [Web of Science ®] , [Google Scholar]) and the cluster is considered as a whole, as a complex economic player, capable of generating coherent action, regulated by institutional mechanisms, and founded on a set of ‘public assets’ which make up its ‘social capital’.

The paper is based on many empirical studies and surveys aimed at exploring the structure of SMEs and the role of the local institutions: the changes observed over time and in response to internationalization underline the reinforcement of the activity's cluster configuration.

These features emphasize the existence of a specific unit of analysis, indivisible from the individuals which constitute it. The discussion touches on the classical themes of the efficiency of the net-economy based on SMEs, and their prospects in a context of growing globalization.

The paper does not aim to enter into the debate on the origins and mechanism of innovation. However, the case study does illustrate the strength of the hypothesis of a unit of analysis different from the firm for discussion of a number of topics: some empirical examples of innovation, of significance for the economic consolidation of the ID, highlight the importance of district relationships in the production and spread of innovation.     

Offshoring versus backshoring: Empirically derived bundles of relocation drivers,and their relationship with benefits

This paper describes an empirically derived classification of the various factors that influence offshoring and backshoring decisions based on data from 275 offshoring and 160 backshoring projects. The study developed one set of factor bundles for offshoring and another set of such bundles for backshoring; these sets were then compared, and their relationships with post-relocation benefits were analyzed. These benefits were also grouped into bundles based on the empirical relationships. This research contributes an empirically derived classification scheme of decision factors for both offshoring and backshoring as well as an analysis of the relationships between decision factors and benefits for each type of relocation direction.     

Competition in the public school sector: Evidence on strategic interaction among US school districts

This paper provides evidence on strategic interaction among local school districts. The analysis makes use of a significant change in the institutional environment for school districts in Michigan in 1996, when the state established a voluntary inter-district choice program. The school districts' participation decisions are modelled as discrete choice decisions using a spatial latent variable model. Strong effects are found saying that lagged adoptions of neighbors positively affect the current probability of participation. A simple test exploiting limitations of student mobility in inter-district transfers suggests that the driving force for interdependencies among adoption decisions was competition for students.     

全球价值链理论与发展中国家产业升级研究进展

目前有关全球价值链理论的研究,主要集中于全球价值链概念、类型、治理和全球价值链的产业集群升级模式等方面。而在此基础上的发展中国家产业升级的研究,主要集中于全球价值链治理模式对发展中国家产业升级的影响、在全球价值链之下发展中国家升级产业的动力机制、以及产业集群升级的途径等方面。在经济全球化背景下,研究全球价值链理论和发展中国家产业升级问题,对研究我国产业提升问题有重要的参考价值。     

Measuring industrial upgrading: applying factor analysis in a global value chain framework

ABSTRACT

A key question for promoting international competition is how to improve the position of countries and industries in global value chains (GVCs). The first step is to properly measure industrial upgrading in GVCs. This is not a trivial issue because upgrading has not been defined unambiguously. Several authors have used different (and sometimes related) measures, all of which indicate certain aspects of upgrading. Rather than trying to find the single, ultimate measure of upgrading, we propose a different approach. We examine the multidimensionality of industrial upgrading, using eight indicators in factor analysis. Four of the eight indicators adopt the GVC perspective and include, for example, the growth of the share in value-added exports. We provide three quantitative dimensions of industrial upgrading: process upgrading, product upgrading, and skill upgrading. With these dimensions, we compare and analyze the upgrading of different countries and industries using the World Input–Output Database.     

环境要约与需求演化——影响需求演化和顾客对价值感知的两个因素分析

需求既依赖于顾客所处环境的现状,也依赖于顾客对环境的要求;环境现状与顾客要求之间的差距是顾客需求的前提,也是顾客价值的前提;产品的意义在于它提高了环境对顾客要求的适应;产品可提供的价值中,只有在顾客要求与环境现状差距之间的部分,才是能够被顾客感知的价值部分。